Serviced Apartments that accommodates short-term guests, especially in the upper-middle and upper segment, also enjoyed the demand from many long-weekend holidays in the review quarter. The serviced apartment sub-sector is expected to experience occupancy decrease in the next quarter with the commenced operation of Somerset Kencana and the decrease of short-stay demand as there will be not many long-weekend holidays as those seen in the Q2-24.
The Purpose Built sub-sector experienced very slight increase in occupancy at +0.3% QoQ or +3.8% YoY to 64% as of the end of June-24. With the popularity of short-term condominium rental platforms such as Travelio and AirBnB, along with the start of the new school term for university that generated tenants from out-of-town students, the occupancy level of condominium-for-lease sub-sector saw a growth of +1.6% QoQ or +2.8% YoY.
PRICING: INCREASED DEMAND FOR CONDOMINIUM-FOR-LEASE BOOSTED RENTAL RATE
The average rental rate of the Rental Apartment market saw an increase of +0.9% QoQ and +2.6% YoY, standing at Rp 262,134 psm per month. The main contributor to the increase is the rising condominium-for-lease rental rate (+4.1% QoQ and +8.8% YoY) along with the increasing demand.
Meanwhile, the rental rates of Serviced Apartment and Purpose Built sub-sectors experienced no significant changes during the review quarter, and are expected to remain relatively stable in the following quarters.
INDUSTRIAL Q2 2024
SUPPLY: NO NEW INDUSTRIAL LAND SUPPLY
The industrial land supply of the Greater Jakarta area remains the same as in the previous quarter, standing at 16,628 hectares as there is no new Industrial Land Supply entering the market during the second quarter of 2024. Estates remain focused on promoting their existing land supply to potential buyers. Future expansion of industrial land supply is expected to come from estates along the eastern corridor of Bekasi, Karawang, and Subang.
During the review quarter, an estimated 37,692 square meters of new warehouse space was added to the overall inventory, bringing the total supply of warehouse space in the Greater Jakarta area to approximately 2.82 million square meters.
DEMAND: SIGNIFICANT RISE IN INDUSTRIAL LAND TRANSACTIONS, WHILE WAREHOUSE OCCUPANCY REMAINED STABLE
During the second quarter of 2024, a total of 182.90 hectares of land sales transactions were recorded, marking a significant increase of 184.0% compared to the previous quarter. This increase was primarily driven by Subang Smartpolitan’s recent sale of 108 hectares to China’s EV automotive giant.
With this sale, Automotive sector represented the largest share of demand, making up 82.60% of the land sale transactions over the review quarter, with other sectors such as Data Center, Textile, and Building Material, contributed to the rest of the take up. The demand is expected to increase throughout the year 2024 following the numerous active inquiries from foreign companies planning to establish their plants in Indonesia.
As of June 2024, the average occupancy rate of leased warehouses in the Greater Jakarta area saw a slight decline, standing at 86.20% which represents a 0.10% decrease compared to in the previous quarter. Market was observed to remain competitive as additional new supply continued. The demand pattern will remain similar, with the primary demand from the automotive and logistics sectors driven by e-commerce activities.
